Oil prices rebounded on Thursday, after having suffered heavy losses in the last three trading sessions on concerns over interest-rate increases and an impending recession in the United States.
Benchmark Brent crude futures rose 1.1 percent to $73.11 a barrel, while WTI crude futures were up 0.8 percent at $69.14.
A weaker dollar offered some support after the Fed hinted at a possible pause in policy tightening, depending on incoming data on inflation and other factors.
As recession worries mount, investors await weekly jobless claims data later in the day and Friday's jobs data for additional clues to policy outlook.
The European Central Bank announces its rate decision later today, with analysts expecting a 25-bps rate hike.
Oil prices also received support after official data from the Energy Information Administration showed crude inventories dropped by 1.3 million barrels last week versus forecasts for a 1.1-million-barrel drop.
Data released by the American Petroleum Institute on Tuesday showed crude oil inventories in the U.S. falling by 3.94 million barrels in the week ended April 28, higher than market expectations of a 1 million-barrel decline.
